Fuel consumption in Jammu and Kashmir crossed 1.35 million tonnes in 2024–25, reflecting a steady rise in demand for petrol and diesel in the Union Territory despite persistent variations in fuel prices across states and Union Territories, the Union government has informed Parliament.

Data tabled in the Rajya Sabha by the Ministry of Petroleum and Natural Gas shows that petrol consumption in Jammu and Kashmir increased to 412.9 thousand metric tonnes in 2024–25, up from 273.1 thousand metric tonnes in 2020–21. Diesel consumption during the same period rose sharply to 941.6 thousand metric tonnes, compared to 576.0 thousand metric tonnes five years earlier. Together, petrol and diesel consumption exceeded 1.35 million tonnes in the latest financial year.
In a written reply to an unstarred question answered on December 15, 2025, Minister of State for Petroleum and Natural Gas Suresh Gopi said fuel prices are market-determined, with Public Sector Oil Marketing Companies (OMCs) taking pricing decisions. He said the final retail prices are influenced by central excise duty, Value Added Tax or other local levies imposed by state and Union Territory governments, as well as freight and logistics costs.
According to official figures, the retail price of petrol in Srinagar stood at Rs 100.71 per litre as on December 9, 2025, while diesel was priced at Rs 86.88 per litre. Central excise duty accounted for Rs 21.90 per litre on petrol and Rs 17.80 per litre on diesel, while VAT in Jammu and Kashmir was Rs 17.51 per litre on petrol and Rs 8.61 per litre on diesel.
The government said it had reduced central excise duty on petrol by Rs 13 per litre and on diesel by Rs 16 per litre in November 2021 and May 2022, and stated that these reductions were fully passed on to consumers. Public sector OMCs also cut retail prices of both fuels by Rs 2 per litre in March 2024. An excise duty hike of Rs 2 per litre on petrol and diesel in April 2025, the minister added, was not passed on to consumers.
Explaining regional price differences, the ministry said variations in fuel prices across the country are largely due to differing VAT rates and local levies imposed by states and Union Territories. It added that OMCs have undertaken intra-state freight rationalisation to narrow price gaps between remote and urban areas, benefiting consumers in far-flung regions, including Jammu and Kashmir.
The Centre said fuel prices and consumption trends are monitored by the Petroleum Planning and Analysis Cell, which compiles state-wise data on retail prices and fuel sales for Jammu and Kashmir, Ladakh and other regions.